Private equity firm Thomas Bravo LLC is acquiring Imprivata (NYSE: IMPR), a health care IT security company, for $544 million.
Imprivata, based in Lexington, Massachusetts, provides software and identity authentication tools for health care organizations to securely access and share patient information, collaborate, access medical devices and ID patients.
In the first quarter, Imprivata reported a net loss of $6.7 million, the same loss reported for the first quarter of 2015, and revenues of $31.5 million, up 23 percent from one year earlier. Despite the loss, Imprivata CEO Omar Hussain reported at the time of the earnings announcement, in May, that the company’s core business was strong, with cybersecurity remaining a major concern for the healthcare industry.
San Francisco-based Thoma Bravo focuses its investments on software- and technology-enabled services, managing funds with more than $17 billion in capital committed by investors. In June, the firm announced three acquisitions. It acquired Bomgar, which sells secure access software for computer systems and devices, from TA Associates. It announced that it would buy Elemica, provider of supply chain operating network management software. And it reported plans to acquire Qlik Technologies Inc.(Nasdaq: QLIK), provider of enterprise software that helps companies analyze and share data for insights into business patterns. Thoma Bravo won Mergers & Acquisitions’ 2014 M&A Mid-Market Award for Deal of the Year.
Other recent deals involving health care software providers have included Bain Capital Private Equity announcing plans to acquire a majority stake in Navicure, provider of claims management and patient payment software; and MedData Inc., provider of health care billing and collections services, announcing plans to acquire Cardon Outreach LLC, manager of patient eligibility, claims and collections services —both in June. And in May, IMS Health Holdings Inc. (NYSE: IMS), a health care information and technology services company, acquired Privacy Analytics Inc., a health data privacy specialist, from the Facit Business Trust in Toronto.
For its deal with Thoma Bravo, Imprivata’s financial adviser is Barclays, with Goodwin Procter LLP serving as legal adviser. Thoma Bravo’s legal adviser for the transaction is Kirkland & Ellis LLP.